144A Offering

Investor Presentation June 2019 Forward-Looking Statements

All statements other than statements of historical fact included in this presentation for Clipper Realty Inc. (the “Company”) regarding the Company’s financial position, business strategy and the plans, objectives, expectations, or assumptions of management for future operations, are forward-looking statements. When used in this presentation, words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “believe,” “expect,” “intend,” “continue,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes are intended to identify forward-looking statements, which are generally not historical in nature. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in such statements.

These risks, contingencies and uncertainties include, but are not limited to, the following: - market and economic conditions affecting occupancy levels, rental rates, the overall market value of our properties, our access to capital and the cost of capital and our ability to refinance indebtedness; - economic or regulatory developments in New York City; - the single government tenant in our commercial buildings may suffer financial difficulty; - our ability to control operating costs to the degree anticipated; - the risk of damage to our properties, including from severe weather, natural disasters, climate change and terrorist attacks; - risks related to financing, cost overruns and fluctuations in occupancy rates and rents resulting from development or redevelopment activities and the risk that we may not be able to pursue or complete development or redevelopment activities or that such development or redevelopment activities may not be profitable; - concessions or significant capital expenditures that may be required to attract and retain tenants; - the relative illiquidity of real estate investments; - competition affecting our ability to engage in investment and development opportunities or attract or retain tenants; - unknown or contingent liabilities in properties acquired in formative and future transactions; - changes in rent stabilization regulations or claims by tenants in rent-stabilized units that their rents exceed specified maximum amounts under current regulations; - the possible effects of departure of key personnel in our management team on our investment opportunities and relationships with lenders and prospective business partners; - conflicts of interest faced by members of management relating to the acquisition of assets and the development of properties, which may not be resolved in our favor; - a transfer of a controlling interest in any of our properties may obligate us to pay transfer tax based on the fair market value of the real property transferred; and - other risks and risk factors or uncertainties identified from time to time in our filings with the Securities and Exchange Commission (“SEC”).

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions “Cautionary Note Concerning Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on March 7, 2019, and other reports filed from time to time with the SEC. Clipper Realty Inc. undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise.

1 Investment Highlights

Only Pure-Play New York City-Centric REIT Robust NYC real estate fundamentals with focus on stable multifamily asset class

Portfolio with Significant Upside Potential Acquire high-quality, diverse New York City real estate at a discount to private market value, with opportunities to re-develop and lease up

Strong Expected NOI Growth Embedded rent growth as existing below-market rents reach current market across the portfolio

Proven Track Record of Value Creation Efficient, internally managed platform led by management team with 70+ years of experience in the challenging New York City environment

High-Quality Management Team with Aligned Interests Founders own 67% of the company, with significant public company experience and deep relationships that drive first look at many NYC multifamily and office opportunities

2 Attractive Current Portfolio – 66 Buildings, 3.1mm Leasable Square Feet

• Multifamily - 99% leased • Office - 100% leased to New York City • Retail - 100% leased • Flatbush Gardens – low-cost option in Brooklyn, delivering steady growth • Tribeca House – significantly below-market residential rents in downtown Manhattan, long-term retail opportunity • 141 Livingston / 250 Livingston – value-add, long-term office repositioning / potential residential conversion • Aspen – transitioning uptown Manhattan neighborhood benefiting from Second Avenue subway completion • 10 West 65th Street – prime residential location near Central Park and Lincoln Center on Manhattan’s Upper West Side • 107 Columbia Heights – renovations nearly complete on recent acquisition in iconic Brooklyn Heights neighborhood Annual Base Annual Base Rental Leasable Percent Property Submarket Rental Revenue Square Feet Leased (1) Revenue by Geography ($ mm) (2) Multifamily Brooklyn Manhattan Flatbush Gardens complex Brooklyn 1,748,577 (3) 99.5% $40.7 50 Murray Street Manhattan 396,528 99.0% 25.8 53 Park Place Manhattan 86,288 99.1% 5.9 Aspen Manhattan 165,542 97.8% 5.8 10 West 65th Street Manhattan 75,678 72.0% 2.9 44% 250 Livingston Street Brooklyn 26,819 100.0% 1.1 56% Total Multifamily 2,499,432 98.5% $82.2 Office 141 Livingston Street Brooklyn 206,084 100.0% $8.2 250 Livingston Street Brooklyn 294,144 (4) 100.0% 8.2 Total Office 500,228 100.0% $16.4 Annual Base Rental Retail Revenue by Property Type 50 Murray Street (retail) Manhattan 44,436 100.0% $2.4 50 Murray Street (parking) Manhattan 24,200 100.0% 1.2 Multifamily Office Retail 53 Park Place (retail) Manhattan 8,600 100.0% 0.4 141 Livingston Street (parking/other) Brooklyn 14,853 100.0% 0.4 250 Livingston Street (retail) Brooklyn 990 100.0% 0.1 250 Livingston Street (parking) Brooklyn - - 0.2 Aspen (retail) Manhattan 21,060 100.0% 0.9 15% Aspen (parking) Manhattan - - 0.3 79% Total Retail 114,139 100.0% $5.9 6%

Total Operating Portfolio 3,113,799 98.8% $104.5

Real Estate Under Development 107 Columbia Heights Brooklyn 102,131 (1) As of March 31, 2019 (2) As of December 31, 2018 3 (3) Comprises 59 buildings (4) Has been remeasured to approximately 342,000 square feet Well-Positioned Portfolio – Brooklyn and Manhattan Centrally Managed, Diverse Portfolio

Aspen

10 West 65th Street

Tribeca House

107 Columbia Heights

141 Livingston St. 250 Livingston St.

Flatbush Gardens

Headquarters

4 Strong New York City Real Estate Fundamentals Unwavering Demand From Institutional and Foreign Investors to Own NYC Real Estate

• Gentrification shift driving people to urban areas -Largest and growing renter population in the U.S. • Strong job creation in NYC metro area supporting positive outlook • High demand for multifamily rental and office space with limited supply • Lack of available land for development limits prospects of significant supply growth • Replacement cost can be extremely high • Brooklyn office market continues to perform as firms look outside Manhattan in search of more affordable spaces

Significant Increasing High Limited Barriers to Rents Demand Supply Entry Over Time

Source: Industry research 5 Portfolio with Significant Upside Potential

% of Property Potential Upside Drivers Portfolio(1) • In-place rents meaningfully lower than legal maximum chargeable per regulation, in gentrifying neighborhood Flatbush 39% • Rents are well below market of $30+ PSF Gardens • Potential to add FAR significantly in excess of original 500,000 sq. ft. amount under review(2)

• Residential currently 14% below market ($69 PSF vs. $80 PSF market) Tribeca House 34% • Retail at massive discount to market ($52 PSF vs. $250+ PSF market for corner locations) • Purchased at half the value of potential condo conversion ($998 PSF vs. $2,000+ PSF)

• 250 Livingston Street (9%) - Recently renewed lease with NYC for ten-year term commencing upon expiration of current leases in August 2020 Downtown - Encompasses 342,496 remeasured square feet at initial $43.62 blended rent PSF (vs. current blended $27.71 PSF) Brooklyn 17% - Expected to initially add approximately $5.0mm to property’s annual NOI Assets • 141 Livingston Street (8%) - Currently leased to NYC at $40 PSF; contracted upcoming rent increase to $50 PSF(3)

• Well-located in transitioning neighborhood just north of Manhattan’s Yorkville section Aspen 7% • Proximity to Second Avenue Subway stop at 96th Street driving rents and tenant profile • Free-market rents 15-20% below market ($44 PSF vs. $50+ PSF market)

• Prime residential location steps from Central Park, plus 53,000 sq. ft. of air rights 10 West 65th 3% • Recently brought 11 free-market units online following renovation Street • Received back ~50% of units in January (ahead of schedule) – repositioning/leasing at market rates • Highly desirable location in iconic Brooklyn Heights neighborhood, near public transportation and bridges 107 Columbia N/A • Repositioning almost complete; expect to begin leasing shortly Heights • 158 free-market apartments with full amenities (estimated $65-$75 PSF rental rates)

(1) Based on Annual Base Rental Revenue (2) Subject to various regulations and approvals (3) Tenant has option to terminate the lease after five years (December 2020); if tenant continues to occupy the building at that time, annual rent 6 will increase by 25%, or $2.1mm, to $50 PSF Flatbush Gardens Rising Rents, Improving Tenant Credit Profile, High Demand, Additional FAR

2,496 rent-stabilized apartments in 59 buildings on 21 acres in East Flatbush, Brooklyn • Acquired October 2005 • Deeply distressed asset at purchase - Reduced 8,000+ NYC housing violations to several hundred • A low-cost option for housing in New York City • Transformation of Brooklyn has reached East Flatbush • 99.5% leased – little inventory to accommodate current demand (1) • Tenant credit profile has improved • Completed major capex projects; continuing to move rents closer to market rate of $30+ PSF - New terrace, additional security cameras and lighting, laundry rooms and mailboxes for each building, refurbished basements • Potential increased FAR: in discussions with New York City zoning office regarding master plan that could add substantially more FAR than original 500,000 sq. ft. available amount(2) • Attractive financing – $246mm, 10-year mortgage due 2028 at 3.5% for first five years, interest-only through August 2020 (1) As of March 31, 2019 7 (2) Subject to various regulations and approvals Flatbush Gardens Powerful Operating Trends Illustrate Real-Time Effect of Asset Repositioning

Rent PSF (1)

$30.00

$23.77 $24.04 $25.00 $22.47 $20.63 $21.24 $19.69 $20.00 $18.88

$15.00 $13.25

$10.00 At 2013 2014 2015 2016 2017 2018 3/31/2019 Acquisition

Vacancy (1)

8.0%

6.0% 5.6% 4.4% 3.8% 4.0% 3.1% 2.9%

2.0% 1.6% 0.5% 0.0% 2013 2014 2015 2016 2017 2018 3/31/2019 (1) Figures represent metric at end of respective period 8 Tribeca House – Multifamily / Retail Trophy Rental Asset with Below-Market Rents and a Significant Retail Opportunity

Two buildings - 506 apartments, plus 8 retail tenants occupying approximately 77,000 sq. ft. • Purchased December 2014 – off-market deal of an under-managed asset • Increased residential rental rate from $61 PSF at acquisition to current $69 PSF (vs. ~$80 PSF market) • Current average retail rental rate of $52 PSF; significantly below market • Re-branded as Tribeca House - Major capital projects complete, significant remaining upside from moving rents to market - Renovated both lobbies, upgraded amenities, targeted apartment renovations ongoing • Purchased at less than half the value of potential condo conversion ($998 PSF vs. $2,000+ PSF) • Attractive financing – $360mm, 10-year loan due 2028 at 4.506%, interest-only for entire term

53 Park Place 50 Murray Street

50 Murray Street 53 Park Place

9 Tribeca House – Residential Opportunity Positive Rental Trends Driven by Targeted Investment

• 22% of apartments currently at or above market (up from 7% at 144A offering) • Renovation program instrumental in achieving market rents -Improved common area experience supporting higher rents, consistent with neighborhood levels -Executing select apartment repositionings as units turn to further close rent gap

Apartment Breakdown by PSF Rents (1)

Market Rent 50.0% At 144A (~$80) Present 42.2% 40.0% 34.4% 31.6% 30.0% 27.1% 23.6% 21.9% 20.0%

12.1% % of Apartments of % 10.0% 7.1%

0.0% <$60 $60 - $70 $70 - $80 >$80

(1) 144A figures represent rental data as of March 31, 2015. Present figures represent rental data as of March 31, 2019 10 Tribeca House – Retail Opportunity Significant Long-Term NOI Growth as Older, Below-Market Retail Leases Turn Over

$280 • Retail streetscape has dramatically improved $250 PSF • Adjacent Four Seasons Hotel and Private $240 Residences opened September 2016 $200

• 1 World Trade Center complex, 9/11 Memorial $160 in close proximity $120 - Significant consumer foot traffic $80 • Current market prices indicate $250+ PSF rental $52 PSF rates for attractive corner locations $40

$0 Tribeca House Tribeca Retail In-Place Rents Market Rents (Corner) Retail Portfolio • 53,036 sq. ft. of total retail space(1) - Includes Equinox gym • Average in-place rent: $52 PSF Leased July 2015 • Filled mid-block vacancy at 120 Church Street

for $140 PSF in July 2015; space had been Expiring 2019 empty since 2001 - 237% increase over average rent under existing retail leases • First leases roll this year - prominent Church Opened September 2016 Street/Park Place corner retail leases across from Four Seasons

(1) There is an additional 24,200 sq. ft. of parking 11 Downtown Brooklyn Office – 141 Livingston and 250 Livingston Favorable Supply/Demand Dynamics and Strong Downtown Market Provide Significant Optionality

Two buildings - approximately 549,000 sq. ft. of office space and 27,000 sq. ft. of residential space • One of the strongest transformative markets in the U.S. - Barclays Center reinvigorated Downtown Brooklyn and brought significant amount of people and awareness to the area - Tech triangle rooted itself in Downtown Brooklyn, creating high demand for office space • 141 Livingston: 100% leased to New York City at $40 PSF; contracted upcoming rent increase to $50 PSF(1) • 250 Livingston office: 100% leased to New York City; signed lease renewal with impactful NOI growth trajectory - Recently renewed lease for ten-year term commencing upon expiration of current leases in August 2020 - Encompasses 342,496 remeasured square feet at initial $43.62 blended rent PSF (vs. current blended $27.71 PSF) - Expected to initially add approximately $5.0mm to property’s annual NOI • 250 Livingston residential: converted top 4 floors to 36 rental apartments ($49 PSF) • Attractive new 250 Livingston financing – $75mm, 2-year loan at L+2.15%, interest-only

141 Livingston Street 250 Livingston Street

(1) Tenant has option to terminate the lease after five years (December 2020); if tenant continues to occupy the building at that time, annual rent will increase by 12 25%, or $2.1mm, to $50 PSF Aspen Well-Located, Modern Property in Transitioning East Side Manhattan Neighborhood

Block-front building – approximately 187,000 sq. ft., 232 apartments, 3 retail units and indoor parking garage

• Purchased June 2016 for $103mm; opened 2004 • 1st Avenue between 100th and 101st Streets • Steps from Second Avenue Subway stop at 96th Street - New subway line transformational for Upper East Side - Elevating neighborhood appeal - Driving apartment demand and rent growth • Apartments currently 97.8% leased at average $36 PSF - 55% free-market (at $44 PSF) - 45% subject to low- and middle-income restrictions Aspen • Retail space fully occupied at average $44 PSF • Opportunity to increase rents by improving property finishes - Free-market rents 15-20% below market ($44 PSF vs. $50+ PSF) • Accretive financing – $70mm, 12-year mortgage at 3.68%

13 10 West 65th Street Steps from Central Park

Residential building – approximately 76,000 sq. ft., plus 53,000 square feet of air rights

• Purchased October 2017 for $79mm • 6-story residential complex with 82 apartments, plus approximately 53,000 sq. ft. of air rights • Located near Central Park and Lincoln Center in Upper West Side submarket of Manhattan • Recently brought online 11 free-market apartments following renovation • Received back 40 dormitory units leased to Touro College at end of January (ahead of schedule) - Repositioning the apartments / leasing at market rates • Anticipated unit mix post-development: 80% free-market, 20% rent-stabilized • Attractive financing – $34.4mm, 10-year mortgage due 2027 at 3.375% for first five years, interest-only through October 2019

14 107 Columbia Heights Prime Location in a Historic Neighborhood

Residential building – approximately 102,000 sq. ft. and indoor parking garage

• Purchased May 2017 for $87.5mm, in vacant condition • Located in iconic Brooklyn Heights neighborhood -Near Brooklyn Promenade, Brooklyn Bridge, numerous subway/bus stops and Brooklyn-Queens Expressway -Unobstructed rooftop views of Lower Manhattan • Property was renovated in 2007 • Repositioning almost complete -158 well-appointed studios, 1BRs and 2BRs -Rooftop terrace, fitness center, landscaped courtyard -68 indoor parking spots • Expect to begin leasing shortly • Current market prices in the area indicate $65- $75 PSF rental rates

15 Proven Access to Accretive Growth Opportunities Opportunistic, Off-Market Acquisitions, Capability to Close

• As a long-term owner and operator, the Company is highly regarded in the New York City real estate industry • Reputation among broker community for moving expeditiously and being a reliable counterparty • Deep relationships with lenders given extensive deal history and proven ability to perform • Numerous prior off-market acquisitions • Demonstrated capability to close, often in complicated situations • Opportunistic approach – comfortable undertaking larger, longer-term projects with attractive return characteristics

Tribeca House - rooftop Aspen Flatbush Gardens

16 Fully Integrated, Internally Managed Platform

• 203 employees • Internal capabilities include acquisitions, accounting, finance, leasing, property management and renovation/construction • Efficient, cohesive operation • Significant experience managing complex assets

David Bistricer Sam Levinson Co-Chairman of the Board & Co-Chairman of the Board & Chief Executive Officer Head of Investment Committee

Larry Kreider JJ Bistricer Jacob Schwimmer Chief Financial Officer Chief Operating Officer Chief Property Management Officer

Design / Permitting / Finance / Accounting IT / Legal / Insurance Property Acquisitions Property Leasing Construction / Renovation

Acquire, reposition and operate complex assets in transitional neighborhoods

17 Management Expert in New York City Real Estate Investing and Operations

Years of Real Estate Background Experience

David Bistricer • Real estate investment career focused on New York City Co-Chairman, 40 • Successfully bought and sold the Sony Building Chief Executive Officer • Co-Chairman, Coleman Cable (Nasdaq: CCIX) from 1999–2011

• Founder and President, Trapeze Inc., a real estate investment company Sam Levinson • Chief Investment Officer, Glick Family Investments Co-Chairman, 19 • Non-Executive Director, Canary Wharf Group (LON: CWGI) / Songbird Head of Investment Estates plc (LON: SBD) from 2004 until its sale in 2015 Committee • Non-Executive Director, Dynasty Financial Partners since 2011

• CFO, Cedar Realty Trust (NYSE: CDR) from 2007–2011 Larry Kreider Jr. • CFO, Affordable Residential Communities from 2001–2007 19 Chief Financial Officer • Controller and CAO, Revlon Inc. and MacAndrews & Forbes • Coopers & Lybrand

• Responsible for all leasing, acquisitions, design, permitting, construction and renovation at Clipper Realty JJ Bistricer 14 Chief Operating Officer • Led numerous successful, large-scale conversion, renovation and transformation projects, including Flatbush Gardens, Tribeca House, 141 Livingston, 250 Livingston and 107 Columbia Heights

18 Seasoned Board of Directors Strong Corporate Governance, Real Estate Expertise, Public Company Experience

Years of Real Estate Background Experience • Chairman, Douglas Elliman, largest residential broker in New York • President, CEO & Director, Vector Group Ltd. (NYSE: VGR) • Vice Chairman, Ladenburg Thalmann Financial Services (NYSE: LTS) Howard Lorber 30+ • Chairman, Nathan’s Famous (Nasdaq: NATH) • Chairman, Morgans Hotel Group Co. (Nasdaq: MHGC) • Director, United Capital Corp. • Trustee, Long Island University

• Chairman, Global Real Estate Practice at Greenberg Traurig • Co-Chairman, REIT group at Greenberg Traurig Robert Ivanhoe 30+ • Extensive professional and community involvement, including The Real Estate Roundtable, Bloomberg BNA, Albert Einstein College of Medicine, and Urban Land Institute

• Principal owner, Iron Hound Management Robert Verrone • Former Co-Head, Wachovia’s Real Estate Group 25+ • Began career at Bear Stearns, spending several years in the Commercial Real Estate Group

19 Seasoned Board of Directors (cont’d) Strong Corporate Governance, Real Estate Expertise, Public Company Experience

Years of Background Experience

• Former CFO, Coleman Cable, Inc. Richard Burger 40+ • Former CEO and President, Burns Aerospace Corp.

• Of counsel, Cozen O’Connor law firm; former Chairman, Financial Services Practice Group Harmon Spolan 40+ • Former President, Jefferson Bank • Director, American European Insurance Group

20 Current Capitalization

Net Debt and Total Enterprise Value ($ mm, except as noted)

Net Debt

Total Debt (1) $924.9

Less: Cash (1) (29.4)

Net Debt $895.5

Total Enterprise Value

Diluted Shares Outstanding (millions) 45.0

Price per Share (2) $12.83

Equity Market Capitalization (2) $577.4

Plus: Total Debt (1) 924.9

Less: Cash (1) (29.4)

Enterprise Value (2) $1,472.9

Dividend Yield (@ $0.095/share quarterly dividend) (2) 2.96%

(1) Debt and cash figures as of March 31, 2019 21 (2) Based on closing price as of May 30, 2019 Investment Highlights

Only Pure-Play New York City-Centric REIT Robust NYC real estate fundamentals with focus on stable multifamily asset class

Portfolio with Significant Upside Potential Acquire high-quality, diverse New York City real estate at a discount to private market value, with opportunities to re-develop and lease up

Strong Expected NOI Growth Embedded rent growth as existing below-market rents reach current market across the portfolio

Proven Track Record of Value Creation Efficient, internally managed platform led by management team with 70+ years of experience in the challenging New York City environment